Many people buy new vehicles and replace them after a few years while they still run well and hold a decent amount of value. U.S. motorists bought about 17 million light trucks and cars in 2018. Many of those vehicles are available on the used car market, which has seen rising costs in recent years due to the rising price of newer vehicles. If you want to buy a used vehicle, you can pay cash or finance your purchase. Here are several benefits of getting a used car loan to finance your purchase.
Better Vehicle
Unless you are flush with cash and price is no obstacle, you likely have a limited budget from which you could pay cash for a used car. You might find a good one whose prior owner maintained and drove it safely, or you might get stuck with a lemon. Financing the purchase of a used vehicle increases your available budget and gives you more options for finding the ideal used car that is in great shape. It also helps you keep more money in your savings account.
Lower Upfront Cost
Getting a used car loan makes it much easier to transition into a newer model you bought on the used market. It should be in good mechanical shape – especially if you bought it from a used car dealer that sells certified used vehicles. A certified used vehicle has undergone an extensive checklist of mechanical systems and potential problems. The dealerships should have fixed any mechanical problems found, which would have made the car more reliable and of better value.
Warranty Protection
When you buy a newer used car, still subject to the manufacturer's factory warranty, that protection follows the car. A used car loan enabling you to buy a newer vehicle gives you a much better chance of buying one with a warranty protection. That warranty has value and might save you a lot of money if something goes wrong that the warranty covers. The bigger budget that you get with a loan for a used car makes it easier to ensure you get one with warranty protection.
You can call, check our online inventory, or visit our showroom to find a good used vehicle and get approved for financing in advance. We have a huge selection of available vehicles. Our team looks forward to working with you.